This article lists the advantages of the iPhone and why it deserve “Invention of the Year”. My favorite one:

It will make other phones better
Jobs didn’t write the code inside the iPhone. These days he doesn’t dirty his fingers with 1’s and 0’s, if he ever really did. But he did negotiate the deal with AT&T to carry the iPhone. That’s important: one reason so many cell phones are lame is that cell-phone-service providers hobble developers with lame rules about what they can and can’t do. AT&T gave Apple unprecedented freedom to build the iPhone to its own specifications. Now other phone makers are jealous. They’re demanding the same freedoms. That means better, more innovative phones for all.